Tehran, Iran, June 24
Trend:
An official in Central Union of Iran Animal Farmers has indicated that the activity of the country's flour factories has led to bran price hikes on the pretext of foreign exchange rate rise.
"The increase of bran price would also cause producers to increase milk prices," said Hassan Nemati, Trend reports citing Fars News Agency.
Iran's Association of Flour Producers has doubled the price of wheat bran on Monday that created concerns over possible rise of price of milk price and other dairy products.
Bran is a good supplement, mostly used as animal feed and rising the bran price might lead to increase of prices by animal farms and dairy industry in Iran.
"The government provides subsidies to factories but they have increased the price of bran twice in the past months. This is not logical, and would cause the rise of prices by dairy industry," Nemati warned.
"Around 70 percent of milk price is determined by price of animal feed. The government set the price of four feed items from the 15 items that are used by animal farmers," he noted. "The share of subsidies farmers received for feed is far less than their demands, so animal farmers are forced to buy feed from black market for high price," he said.
Iran produces more than 14 million tons of wheat bran while the fluctuation of foreign exchange rate has effected the increase of prices.